Is there any risk to CD? - certificates of deposit fdic insured
Certificate of deposit at banks such as ING and Wells Fargo Bank .... You will probably insured by the FDIC, but what are the potential dangers of opening a CD with a lot of money?
Thursday, January 21, 2010
Certificates Of Deposit Fdic Insured Is There Any Risk To CD?
6 comments:
There is no risk to the FDIC limit is increased to $ 250,000 .. raised
The only risk is that you can earn less money in a CD as if it were invested in equities. For example, 6% 12-month CD was going to win exactly that by 6% on the dollar. But measures that could earn much more if they are wise and choose the right stocks. But given the current economic environment, if the plan will not invest for 20 years, you go and buy CDs and other short-term. But if you do not plan to spend their money for 20 years back to buy shares. It is very small, right now, and you can find bargains, how stable General Electric, Coca-Cola, etc. that are stable companies with large cash reserves, good dividends and lines of moderate growth trend.
Not at all.
Invest your heart CDs and go to sleep for the rest of his life.
Brokerages such as Schwb you can earn 6% in about 10 CDs of the year. It's better than if a diversified portfolio every freaking day of the year.
Make sure you do not have the FDIC insurance. In a hallway, you can buy 100 90000 insured cd's in various banks - for everyone.
The risk is:
If you want to sell, you should call your agent in person and sell them at market prices. Lost In general, 6 months interest was that the CD from the top or bottom. The other danger - you forget MIGH investments.
As long as you keep under 250K there is no danger.
CD's are by the FDIC up to the amount of $ 250 000 per insured person.
Of course you would not be in the $ 250K in a CD ... but I would a portfolio of Nice 6-disc CD Buy "month" level, so not all at once, then turn around and reinvest runs with interest.
(If I am ultra-conservative with money to invest and there were many) of them.
His "safe" with Wells Fargo ... If you have questions about a bank check to determine whether to sell their shares.
Golden Rule ... If the bank is $ 10 or less .... I ran.
You're right - CD's are up to $ 250K by the FDIC. The only danger is that money in a CD in jail (can not be withdrawn without penalty) for the period CD.
They are insured by the FDIC, like any other account deposits.
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